China Nonferrous Gold Procurement Agreement
May 25 2016 - 5:38AM
UK Regulatory
TIDMCNG
China Nonferrous Gold Limited ??????????
("CNG" or the "Company")
Procurement Agreement
China Nonferrous Gold Limited ?????????? (AIM: CNG), the mineral
exploration and mining company currently mining the Pakrut gold
project ("Pakrut project") in the Republic of Tajikistan, is
pleased to announce that LLC Pakrut, a wholly owned subsidiary of
the Company, has signed a procurement agreement (the "Agreement")
with China Nonferrous Metals International Mining Co. Ltd
("CNMIM"), the Company's 38.36% shareholder, under which CNMIM will
act as agent for LLC Pakrut to procure equipment, spare parts and
other materials required for the Pakrut project.
Under the Agreement, LLC Pakrut will review all quotes provided
by CNMIM and retain the final decision in relation to the
purchasing of all goods. The total amount to be procured under the
Agreement is expected to be $7 million and all goods will be
transported to Dushanbe, the capital of Tajikistan, by CNMIM. For
acting as agent for LLC Pakrut, CNMIM will be paid a commission of
5% on all goods procured. The Agreement, governed by the law of
China, is valid until 31 December 2017.
Related Party Transaction
CNMIM is a substantial shareholder of the Company and, as a
result, pursuant to AIM Rule 13, the entry into the Agreement with
CNMIM is deemed to be a related party transaction. The Independent
Directors of the Company namely Leonard Li, Che Pizhao and Wang
Yubin consider, having consulted with CNG's Nominated Adviser,
Investec Bank plc, that the terms of the Agreement are fair and
reasonable insofar as the shareholders of CNG are concerned.
Weili (David) Tang, Managing Director of CNG, commented:
"We are pleased to have entered into this procurement agreement
with CNMIM. It will allow CNG to benefit from CNMIM's purchasing
power and increase our supply options."
For further information please visit the Company's website
(www.cnfgold.com) or contact:
China Nonferrous Gold Limited
David Tang, Managing Director
Tel: +86 10 8442 6681
Investec Bank Plc
Jeremy Ellis, George Price
Tel: +44 (0)20 7597 5970
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0)20 7382 8300
Blytheweigh
Tim Blythe, Camilla Horsfall
Tel: +44 (0)20 7138 3224
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160525005579/en/
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(END) Dow Jones Newswires
May 25, 2016 05:38 ET (09:38 GMT)